Currently, the accrual basis of Protection Plan will always follow the paid date, hence, it makes the accrual basis inaccurate.
We’ve implemented an update to the Protection Plan Report to ensure that the accrual basis for Protection Plan revenue aligns seamlessly with the Income Statement, providing a more accurate reflection of revenue recognition.
To achieve a 100% match between the Protection Plan accrual and Income Statement revenue, we have enhanced the way we track and report Protection Plan revenue based on delivery status.
The protection plan will now be tracked using the delivery status of each order, allowing us to better manage multiple statuses for protection plans. Previously, returned Protection Plans were not properly accounted for due to limitations in status tracking. With this update, our newly redesigned return process can categorize and manage protection plan returns accurately by delivery status.
Note:
It will only affect the upcoming order, so the previous order created before 9/30 will remain unchanged.
We've rolled out an update to correct the calculation of the Protection Plan Attachment Rate to ensure more accurate statistics and reliable data for management decision-making.
SpeedQueen brand products are now excluded from the protection plan attachment rate calculation. The attachment rate has been recalculated for all clients to reflect the updated logic and provide accurate performance metrics.
